Ron Baron

Ron Baron

Last Update: 06-10-2016

Number of Stocks: 296
Number of New Stocks: 23

Total Value: $18,898 Mil
Q/Q Turnover: 5%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Ron Baron' s Profile & Performance

Profile

Ron Baron is the founder of Baron Capital Management. He is Co-Portfolio Manager of Baron Asset Fund and remains Portfolio Manager of the Growth and Partners Funds. Baron graduated from Bucknell University with a B.A. in Chemistry, and later attended George Washington University Law School in the evenings.

Web Page:http://www.baronfunds.com/

Investing Philosophy

Ron Baron invests primarily in small and mid-size growth companies. He likes companies with open-ended growth opportunities and defensible niches. He applies a bottom-up company research, invests for the long-term, and tries to purchase companies at what he believes are attractive prices. He invests in growth companies using a value-oriented purchase discipline. Baron ignores short-term market fluctuations when he believes the fundamental reasons for purchasing a company have not changed. He holds investments for longer than five years on average.

Total Holding History

Performance of Baron Partners Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
2015-2.711.19-3.9
201410.2613.69-3.4
201347.6332.3915.2
3-Year Cumulative58.4 (16.6%/year)52.3 (15.1%/year)6.1 (1.5%/year)
201216.4160.4
2011-5.742.11-7.8
5-Year Cumulative73.8 (11.7%/year)80.4 (12.5%/year)-6.6 (-0.8%/year)
201031.5215.0616.5
200928.226.461.7
2008-46.67-37-9.7
200711.345.495.9
200621.5515.795.8
10-Year Cumulative111.4 (7.8%/year)102 (7.3%/year)9.4 (0.5%/year)
200514.374.919.5
200442.3510.8831.5
200334.9528.686.3
2002-18.07-22.14.0
2001-15.71-11.89-3.8
15-Year Cumulative220.8 (8.1%/year)107.5 (5%/year)113.3 (3.1%/year)
20004.82-9.113.9
199918.4221.04-2.6
199811.6828.58-16.9
199749.8833.3616.5
199616.1322.96-6.8
20-Year Cumulative674.1 (10.8%/year)381.4 (8.2%/year)292.7 (2.6%/year)
199536.9437.58-0.6
19944.761.323.4
199328.7810.0818.7
199216.837.629.2

Top Ranked Articles

Baron Funds Comments on Arch Capital Group Ltd. Guru stock highlight
We own Arch Capital Group Ltd. (NASDAQ:ACGL), a specialty insurance and reinsurance company run by an experienced management team with a successful track record across several insurance cycles. Arch excels at underwriting specialized property & casualty policies and can shift its business mix to target the most profitable areas. The company has a unique compensation system for its underwriters that rewards long-term profitability rather than short-term premium growth. Management has demonstrated excellent underwriting discipline and has returned excess capital to shareholders during soft pricing cycles, allowing Arch to maintain industry-leading returns on equity. Its stock has doubled in the last five years. Read more...
Baron Funds Comments on First Republic Bank Guru stock highlight
We’re also invested in First Republic Bank (NYSE:FRC), which provides banking and wealth management services to affluent customers in urban, coastal markets across the U.S. First Republic was founded 30 years ago, acquired in 2007 by Merrill Lynch (which subsequently merged with Bank of America), and spun off as a separate company again in 2010. First Republic differentiates itself through its singular focus on providing exceptional customer service, resulting in high customer loyalty and superior growth. The bank is well-capitalized and is led by an experienced management team that has demonstrated superior underwriting performance over many years. First Republic’s stock has risen over 160% since its IPO in 2010 as its high-touch business model and affluent customer base have driven strong market share gains. Read more...
Baron Funds Comments on Financial Engines Guru stock highlight
Several of the companies we own service the growing need for investment advice among individual investors. Financial Engines, Inc. (NASDAQ:FNGN) is an advisory service for employees of participating employer retirement plans. While it is the significant market leader, it still has just $115 billion in 401(k) assets under management in a highly fragmented market. Its relationships with plan record keepers provide access to over $3 trillion in assets and its products are applicable to the vast majority of these accounts. We think Financial Engines has a long runway of growth as more plan sponsors provide their employees with access to its products, individual investors utilize its services, and new channels of distribution are opened beyond the retirement space. Read more...
Baron Funds Comments on Charles Schwab Corp Guru stock highlight
We are also investors in The Charles Schwab Corp. (NYSE:SCHW), a premier discount brokerage firm offering securities brokerage and other financial services to individual investors and independent financial advisors. We have owned this company since 1992, when the stock was trading at a split adjusted price of around $1 per share. Today, it trades at more than 30 times that amount. Despite this impressive growth, we feel the company still has many opportunities ahead. Management’s emphasis on earning customer trust has made it, in our view, a sterling brand. We believe its premium brand and superior services will allow Schwab to continue winning share in its core business. Additionally, the Investor Services division has broadened its offerings to include investment management and advice. Its recently released product, Schwab Intelligent Portfolio, manages a client’s assets for no additional cost by utilizing proprietary product and the Schwab bank. We believe this complimentary service will be difficult for rivals to match and will create sticky and valuable customer relationships. Read more...
Baron Funds Comments on Primerica Inc. Guru stock highlight
Primerica, Inc. (NYSE:PRI) also serves a growing need for financial planning in an underserved customer segment. The company provides term life insurance and third-party investment products to middle income households that are often ignored by other financial companies. Primerica has a multi-level sales model that positions the company to reach middle income investors in a cost-efficient manner and help them set and achieve their financial goals. Read more...
» More Ron Baron Articles

Commentaries and Stories

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Conflicting Views Exist About the Tesla-SolarCity Acquisition CEO believes synergies exist, but analysts think otherwise Ron Baron - Conflicting Views Exist About The Tesla-SolarCity Acquisition
Tesla Motors Inc. (NASDAQ:TSLA) announced an all-stock merger with SolarCity Corp. (NASDAQ:SCTY) for $2.8 billion on June 21. More...

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Ron Baron: Under Armour Set to Grow, Netflix a Mistake Baron discusses two of his major picks Ron Baron - Ron Baron: Under Armour Set To Grow, Netflix A Mistake
Ron Baron (Trades, Portfolio), founder of Baron Funds, said he has made 10-12 times his money and bought Under Armour (NYSE:UA) as its gone down. He believes the stock will go from $5 billion to $20 billion in 8-10 years with a good profit margin like Nike (NYSE:NKE) and Amazon (NASDAQ:AMZN). He also said he misunderstood Netflix (NASDAQ:NFLX) so he sold it at $80, right before it increased sharply. More...

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Ron Baron: Stocks Are Cheap Right Now People are wrongly afraid to invest, he said Ron Baron - Ron Baron: Stocks Are Cheap Right Now
Ron Baron (Trades, Portfolio), founder of Baron Funds, told CNBC Tuesday that previous market corrections have made investors scared. He also holds the less popular opinion that stocks are cheap as a result although the S&P 500 is near an all-time high: More...

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Baron Funds Comments on China Everbright Ltd. Guru stock highlight
China Everbright Ltd. (SHSE:601818), an asset management firm that has grown assets under management (AUM) at a 30% CAGR over the last five years, is another example. According to market research firm Oliver Wyman, as of 2013, just 3% of China’s RMB 145 trillion in investable assets was held in mutual funds. As investment constraints for institutional/state-owned investors are relaxed, Chinese households shift from saving to investing, and China pushes to internationalize the RMB, AUM in China are expected to grow from RMB 4 trillion in 2013 to RMB 24 trillion in 2020. In addition, we believe low interest rates driven by the government’s economic stimulus will compel more households to move assets out of traditional, low-yielding products such as savings accounts into professionally managed products. Taken together, we believe these trends represent a massive opportunity for fund managers such as China Everbright. More...

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Baron Funds Comments on Credicorp Ltd. Guru stock highlight
We invest in Financials companies located overseas through our three international funds. In addition to our traditional investment criteria, we look for companies that are poised to benefit from secular or structural growth opportunities in their regional markets. For instance, we own Credicorp Ltd. (NYSE:BAP), the largest financial services company in Peru, with dominant positions in banking, insurance, and asset management. In addition to a high quality management team and a track record of delivering solid profitability, we think Credicorp stands to benefit from two major secular trends: an increase in banking penetration and favorable demographics. Peru is still vastly underserved in terms of financial services, with a loan/GDP ratio of roughly 27%, among the lowest in Latin America, implying significant room for banks to increase lending. In addition, a population with a young, but increasing, median age; a reduction in poverty levels; and a gradual formalization of the labor force will boost demand for financial services, in our view. From More...

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Baron Funds Comments on MarketAxess Holdings Inc. Guru stock highlight
Technology is also transforming the capital markets. Trading across asset classes continues to migrate away from trading pits and phones to electronic venues. Regulatory changes enacted after the global financial crisis have accelerated this shift as higher capital and liquidity requirements for banks have restricted their ability to act as effective market-makers. MarketAxess Holdings Inc. (NASDAQ:MKTX) operates the dominant electronic platform for trading corporate bonds. We believe the corporate bond market is in the early innings of a secular shift from voice-based trading to electronic trading, and that MarketAxess will be the prime beneficiary of this transition. More...

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Baron Funds Comments on Worldpay Group Guru stock highlight
London-based Worldpay Group plc (NYSE:WPG) is the largest merchant acquirer in Europe, serving a diverse set of 400,000 merchants across 146 countries in 126 currencies. The company is the dominant player in the attractive U.K. payments market and has a fast growing and highly profitable e-commerce business that’s benefiting from the rapid growth of online commerce. More...

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Baron Funds Comments on Vantiv Inc. Guru stock highlight
Further down the payments value chain sit merchant acquirers and processors, who act as the “sales and distribution” arm of the payments industry. Acquirers enable merchants to accept credit and debit card payments by connecting them to the various networks. Vantiv, Inc. (NYSE:VNTV) is a leading merchant acquirer and payment processor in the U.S. that directly benefits from growth in consumer spending and the secular shift from cash to electronic payments. The company is gaining share due to investments in integrated payments technology and e-commerce capabilities. A significant industry shift toward chip-based, EMV cards should drive continued strong organic growth, in our view. More...

  • Currently 5.00/5

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Baron Funds Comments on Primerica Inc. Guru stock highlight
Primerica, Inc. (NYSE:PRI) also serves a growing need for financial planning in an underserved customer segment. The company provides term life insurance and third-party investment products to middle income households that are often ignored by other financial companies. Primerica has a multi-level sales model that positions the company to reach middle income investors in a cost-efficient manner and help them set and achieve their financial goals. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Baron Funds Comments on Charles Schwab Corp Guru stock highlight
We are also investors in The Charles Schwab Corp. (NYSE:SCHW), a premier discount brokerage firm offering securities brokerage and other financial services to individual investors and independent financial advisors. We have owned this company since 1992, when the stock was trading at a split adjusted price of around $1 per share. Today, it trades at more than 30 times that amount. Despite this impressive growth, we feel the company still has many opportunities ahead. Management’s emphasis on earning customer trust has made it, in our view, a sterling brand. We believe its premium brand and superior services will allow Schwab to continue winning share in its core business. Additionally, the Investor Services division has broadened its offerings to include investment management and advice. Its recently released product, Schwab Intelligent Portfolio, manages a client’s assets for no additional cost by utilizing proprietary product and the Schwab bank. We believe this complimentary service will be difficult for rivals to match and will create sticky and valuable customer relationships. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Baron Funds Comments on Financial Engines Guru stock highlight
Several of the companies we own service the growing need for investment advice among individual investors. Financial Engines, Inc. (NASDAQ:FNGN) is an advisory service for employees of participating employer retirement plans. While it is the significant market leader, it still has just $115 billion in 401(k) assets under management in a highly fragmented market. Its relationships with plan record keepers provide access to over $3 trillion in assets and its products are applicable to the vast majority of these accounts. We think Financial Engines has a long runway of growth as more plan sponsors provide their employees with access to its products, individual investors utilize its services, and new channels of distribution are opened beyond the retirement space. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Baron Funds Comments on First Republic Bank Guru stock highlight
We’re also invested in First Republic Bank (NYSE:FRC), which provides banking and wealth management services to affluent customers in urban, coastal markets across the U.S. First Republic was founded 30 years ago, acquired in 2007 by Merrill Lynch (which subsequently merged with Bank of America), and spun off as a separate company again in 2010. First Republic differentiates itself through its singular focus on providing exceptional customer service, resulting in high customer loyalty and superior growth. The bank is well-capitalized and is led by an experienced management team that has demonstrated superior underwriting performance over many years. First Republic’s stock has risen over 160% since its IPO in 2010 as its high-touch business model and affluent customer base have driven strong market share gains. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Baron Funds Comments on Arch Capital Group Ltd. Guru stock highlight
We own Arch Capital Group Ltd. (NASDAQ:ACGL), a specialty insurance and reinsurance company run by an experienced management team with a successful track record across several insurance cycles. Arch excels at underwriting specialized property & casualty policies and can shift its business mix to target the most profitable areas. The company has a unique compensation system for its underwriters that rewards long-term profitability rather than short-term premium growth. Management has demonstrated excellent underwriting discipline and has returned excess capital to shareholders during soft pricing cycles, allowing Arch to maintain industry-leading returns on equity. Its stock has doubled in the last five years. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Baron Insight: Investing in Financials By Michael Baron, VP, research analyst; Josh Saltman, VP, research analyst; Jose Barria, research analyst Ron Baron - Baron Insight: Investing In Financials
The Financials sector has lagged significantly since the 2007-08 financial crisis. As of March 31, 2016, the category was down 14% since its October 9, 2007 peak, compared with the broader market as measured by the Russell 3000 Index, which increased 59%. Many financial companies experienced subdued profitability and growth in the aftermath of the crisis as a result of heightened regulation, fines, and historically low interest rates. Most recently, credit risk in the energy space has weighed on the sector. The decreasing likelihood of near-term U.S. Federal Reserve rate hikes has not helped either. More...

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Many of Ron Baron's 1st-Quarter Divestitures Are Overvalued Today Stake in ITC Holdings was guru's largest divestiture Ron Baron - Many Of Ron Baron's 1st-Quarter Divestitures Are Overvalued Today
Ron Baron (Trades, Portfolio) of Baron Funds sold more than 40 stakes in the first quarter. Many of his largest divestitures are overvalued today, according to the DCF Calculator. More...

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Tallgrass Energy Partners Insider Adds to Stake Company's CEO purchases 5,300 shares Ron Baron,Jim Simons - Tallgrass Energy Partners Insider Adds To Stake
David Dehaemers Jr. (Insider Trades), CEO and president of Tallgrass Energy Partners LP (TEP), purchased 5,300 shares of the company on May 26. The price per share was $45.11 for a total transaction of $239,083. More...

DAVID DEHAEMERS JR, INSIDER TRADES, TALLGRASS ENERGY PARTNERS LP


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Baron Funds Comments on Bristol-Myers Squibb Guru stock highlight
After watching and following Bristol-Myers Squibb (NYSE:BMY) for the better part of the last three years we used the weakness in the stock created by the sell-off in the biotech sector to finally initiate a small to medium size position. Bristol specializes in small molecule drugs known as biologics, which are harder for the generic drug companies to replicate, and we are particularly excited about its lead immuno-oncology asset, Opdivo which has shown incredible promise in the treatment of lung cancer, while growing 10-20% month over month since its approval in 2015. Based on our belief in the effectiveness of the PD-1 class drugs, we think there is a high likelihood that Bristol will be able to gain approvals and expand the usage of Opdivo in other types of cancers (melanoma, renal, head and neck, hodgkin’s lymphoma, etc.) and could potentially change the paradigm of cancer’s treatment worldwide. More...

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Baron Funds Comments on Illumina Inc. Guru stock highlight
Shares of Illumina, Inc. (NASDAQ:ILMN) detracted from performance in the first quarter. Illumina is the leading provider of DNA sequencing technology to academic and commercial laboratories. Although fourth quarter financial results were solid, management tempered expectations for the first quarter HiSeq X and benchtop instrument sales. We continue to believe Illumina has a long runway for growth, driven by increasing adoption of DNA sequencing in clinical markets such as cancer screening, diagnosis, and treatment. More...

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Baron Funds Comments on Regeneron Pharmaceuticals Guru stock highlight
Shares of Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) fell in the first quarter as a result of the significant sell-off in the biotech/pharma space and a miss on the top and bottom lines versus the expected fourth quarter results. 2016 guidance for Eylea (its lead ophthalmology asset) was sharply down from 2015. Launch of its new cardiovascular drug, Praluent, has been slow, and it lost a court case involving the drug. We have trimmed our position but decided that Regeneron deserved benefit of the doubt. Given Sanofi’s 22% ownership and its reliance on company for R&D productivity, we believe Regeneron enjoys a privileged position in the biotech universe. More...

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Baron Funds Comments on Alexion Pharmaceuticals Guru stock highlight
Shares of Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) fell in the first quarter as a result of the significant correction in the biotech/pharma space. Alexion develops treatments for rare diseases. Its high foreign exchange exposure and high multiple also pressured the stock. Overall, we believe there have been no significant changes to the fundamentals of Alexion’s investment thesis (innovative, exceptionally well-managed company with unique assets and pricing power) and we retain conviction. More...

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